Which One of the Following Is a Characteristic of the Double

question 120

Multiple Choice

Which one of the following is a characteristic of the double entry system?

• A)For every debit in every account, there must be a corresponding credit of the same dollar amount in the same account.
• B)The total dollar value of debits and credits must equal the total value of assets and liabilities.
• C)For every asset recorded in the accounting records, there must be a corresponding liability of the same dollar amount.
• D)The total dollar amount of debits must equal the total dollar amount of the credits.

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Definitions:

Job-Order Costing System

An accounting method used to assign costs to specific batches or orders of products.

Overhead Applied

The allocation of indirect costs to the different products or services produced, based on a predetermined rate.

Direct and Indirect Labor Costs

Expenses related to the wages of workers directly involved in production and those who support the production process.

Job-Order Costing

An accounting method that tracks costs individually for each job, suitable for bespoke or custom work.